Popular >

Ryan placed 1,000 in a savings account which compounds interest annually at a rate of 2.5% . How much will he have in the account after 2 years?Round your answer to the nearest dollar.Do NOT round until you have calculated the final answer.

Solution

Ryan placed 1, 000 in a savings account which compounds interest annually at a rate of 2.5% . How much will he have in the account after 2 years?Round your answer to the nearest dollar.Do NOT round until you have calculated the final answer.

Solution

Amount : 1050.625

Solution steps

Translate the problem into an equation:

A = 1000 (1 + \frac{0.025}{1})^{1 \cdot 2}

1000 (1 + \frac{0.025}{1})^{1 \cdot 2} = 1050.625

Amount : 1050.625

Popular Examples

A person invests 4500 dollars in a bank. The bank pays 5.75% interest compounded semi-annually. To the nearest tenth of a year, how long must the person leave the money in the bank until it reaches 10000 dollars?four less than four times a number Determine the simple interest earned on 10,000after 30 years if the APR is 12%.The product of 2 numbers is 4.2. What are the 2 numbers if their sum is 4.2.Bruce puts 500.00 into an account to use for school expenses. The account earns 7% interest, compounded continuously. How much will be in the account after 5 years?